Fjallabyggð municipality came into being as an administrative unit when Ólafsfjörður and Siglufjörður were united in 2006. In October 2010 the Héðinsfjörður tunnel, a 10km (7+ 3) long tunnel combined the two towns through the beautiful, formerly isolated, Héðinsfjörður. Known for its great winters and mild weather, Siglufjörður is the northernmost town in Iceland, surrounded by towering mountains all around. The town is most famous for having been the Capital of the North Atlantic Herring Fishery from 1903-1965, flourishing as a vibrant centre of culture in the north.

The population of Fjallabyggd is 2,000 plus.

The main cultural attraction in Siglufjörður is The Herring Era Museum. Winner of the Icelandic Museum Award in 2000, The Herring Era Museum was nominee for the 2004 European Museum of the Year Award and winner of the 2004 Micheletti Prize as Best New Industrial Museum in Europe. Its three large exhibit buildings tell the stories of the people who worked in the herring industry, of the factories and products and of the fishing and fishing boats. Living exhibitions are every Saturday in July where herring is salted outdoors in front of Róaldsbrakki.

The Folk Music Centre brings Icelandic folk music to life. People from all over Iceland can be seen singing folk songs, playing traditional instruments and performing folk dances.

Since 2012, Reitir http://www.reitir.com/ has annually invited a number of people from around the world to Siglufjördur to participate in an experimental approach to the traditional art workshop. Reitir includes young professionals from all around the world with all sorts of expertise to the northern part of Iceland to collaborate on innovative works that address the town of Siglufjördur, in one way or another.

Each July, the town hosts an annual Folk Music Festival with participants from around the world giving concerts, lectures and workshops. At the heart of this popular festival is the Folk Music Centrean education and information centre located in the restored home of Iceland's greatest collector of Icelandic folk music.

In the beginning of August, history comes to life during the Herring Festival, with outdoor herring salting demonstrations at the Herring Museum and lively singing, dancing and music and concerts on the towns square in evenings.

Siglufjörður offers excellent opportunities for outdoor sports and recreation, from bird-watching and hiking to golf and horseback riding at farm Sauðanes. The town also has an indoor swimming pool and a workout gym.

The Township of Siglufjörður owns a large collection of art representative of the Icelandic visual arts scene of the 1960s through the 1980s. These works can be found on display at a number of locations in the town, including the Town Hall, the bank and the hospital.

Tourist information is in the library (on first floor of the Town Hall) during the summer and during winter knitting evenings are held there every other Tuesday.